For students and parents looking for ways to pay the exorbitant expenses associated with a college education today, student loans are a viable option. There are numerous types of educational loans available and they are packaged in three key categories:

Student loans – Stafford and Perkins loans. These include:

Subsidized Federal Stafford Loan – Long-term, need-based student loan with low interest rate. The government will pay the interest on the loan while a student is in school or when the student requires a grace period of deferment.

Unsubsidized Federal Stafford Loan –Long-term, non-needs based student loan with low interest rate. Best for students who do not qualify for other types of financial aid or who still need more money in addition to other forms of financial aid.

Federal Perkins Loan – Available to students based on extreme financial need. These loans have very low interest rates. The interest doesn’t start to accrue until 9 months after a student drops below half-time enrollment or graduates.

Parent loans – PLUS loans

Federal PLUS Loan – Available to parents whose children are attending college full or part time in an undergraduate program. These loans are based on credit history and cost of attendance. The interest is low but repayment typically begins within 60-90 days after full disbursement of the loan, or after the student graduates.

Private student loans – “Alternative student loans”

In addition, you may want to consider a consolidation loan, which allows a borrower to lump all loans into one for simplified payment.